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United Airlines' loyalty program worth $22B

United Airlines values its loyalty program at $22B, Skift reports.  Opening the secret box to the industry's most valuable assets... its loyalty member audience and point currency. As the travel landscape changes, companies will have to look at ways to leverage their loyalty program members as an addressable audience in new ways without eroding trust.



Not since Air Canada sold (and then bought back) its loyalty program, have we had such a public view of the revenue-generating power of loyalty. United's program generated 12% of the airline's total revenue in 2019, you bet that number will be much higher in 2020, and they will be looking for ways to continue to grow that number.

Important to note that hotel companies have turned to their loyalty programs as for financing as well, by pre-selling points to their credit card partners.  Both Hilton and Marriott have presold close to $1B dollars each. 

Will we start valuing travel companies by the size of their loyalty program instead of the number of flights, properties?  




Sources: 

Comments

  1. Newjetnet aa Com Login: All You Need to Know!6:10 AM

    There is a lot of competition in the airline, here also there is competition between private and government airlines. In private airlines, facilities and customers have to be attracted from other resources

    ReplyDelete

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